CMS Info Systems IPO GMP, Subscription, Financials, Key Details. Should You Buy?

CMS Info Systems IPO: The initial public offering of cash management firm CMS Info Systems Limited opened a day back. The CMS Info Systems IPO was subscribed 40 per cent on the first day of bidding, drawing a decent response from investors, especially the retail category.  The CMS Info Systems IPO has now reached its second day of bidding, and it remains to be seen how it performs on Wednesday, December 22. The offer will close after a three-day bidding process on Thursday. CMS Info Systems Limited is India’s largest cash management company based on number of ATM points and number of retail pick-up points as of March 31, 2021.

The firm is looking to mop up Rs 1,100 crore through its initial public offering, with 5.093 – 5.366 crore shares up for sale. The issue, that opened on Tuesday, December 21, is an entirely offer for sale one. This means that CMS Info Systems will not receive any proceeds from the IPO. As of Tuesday, the issue was booked 40 per cent, with backing from the retail investors category who invested for 79 per cent of the shares set aside for them. The Non Institutional Buyers  category was booked just 1 per cent, according to data from the Bombay Stock Exchange, or BSE. The Qualified Institutional Buyers did not place any bid for the issue yet.

The CMS Info Systems IPO has a price band of Rs 205 to Rs 216 per equity shares, the company has notified.

The Rs 1,100 crore issue is entirely an offer for sale by selling promoter Sion

Investment Holdings Pte. Ltd, which will receive all the proceeds from the issue. The proceeds from the OFS will be used to carry out an offer for sale of equity shares by promoters aggregating up to Rs 1,100 crore and to achieve the benefits of listing the equity shares on the stock exchanges. The lot size of the offer is 69, which means that a bidder can buy a minimum of 69 shares and i multiples of 69 thereof.

The promoter currently holds 100 per cent of the company. After the public offer, it will come down to 65.59 per cent.

CMS Info Systems Limited is expected to make its stock market debut on December 31. On Wednesday, that is the second day of bidding, the unlisted shares of the CMS Info Systems IPO was trading at Rs 35, which is just 16 per cent of the upper price band of Rs 216. The low grey market premium of CMS Info Systems IPO indicated a tepid listing for the issue later this month.

Analysts at Anand Rathi were positive about the CMS Info Systems IPO for investors who want to invest for long terms. “We see limited upside for growth in

the future. While evaluating on the financial front at the upper end of

the IPO price band the valuation seems to be reasonable, factoring all

the above Scenarios, we assign “Subscribe- Long Term” rating to this

IPO,” said the brokerage house in a note.

Meanwhile, researchers at HEM Securities gave a subscribe rating to the public issue. “Company is bringing the issue at price band of Rs 205-216 per share at p/e multiple of 19x on FY21 eps basis. Company being leading player in consolidating market with strong fundamentals has integrated business platform offering a broad range of services and products. Also, company has track

record of strong productivity and operational excellence with experienced and highly qualified management . Hence we recommend “Subscribe” on issue,” it said.

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